Domino's Pizza (DPZ) slightly beat Q4 revenue expectations, but slower US same-store sales guidance in H2 2026 and below consensus international growth raise concerns about sustaining momentum in 2027, RBC Capital Markets said Monday in a note.

For 2026, the company expects approximately 6% growth in global retail sales, 8% in earnings before interest and taxes, 3% in US same-store sales, and 1% to 2% in international same-store sales, according to the report.

RBC said unit growth remains a driver of market share and management believes the US business can double over time. The firm modeled too conservatively and raised its 2026 US same-store sales estimate by 50 basis points, while the 2026 unit growth estimate was lowered by 25 basis points on prolonged DPE headwinds.

RBC's international unit growth estimate for 2026 increased 11.2% to 795 net adds per year, while US units remained unchanged. 2026 revenue, EBIT and earnings per share estimates were pushed 1.7%, 4.5% and 7.0% higher, respectively, the report said.

For 2027, RBC's underlying estimates flow through with top-line being slightly higher, though the firm trimmed US same-store sales growth by 10 basis points due to higher 2026 estimates.

RBC maintained a sector perform rating on Domino's with a price target of $425.

Shares of the company rose 3.4% in recent Tuesday trading.

Price: 412.81, Change: +12.45, Percent Change: +3.11